Oil Prices Drop >9% Weekly Amid Conflict

Oil Prices Drop >9% Weekly Amid Conflict

The Reuters‑sourced article, authored by Anuron Mitra and published on 26‑06‑2026 (updated 27‑06‑2026), reports that oil markets suffered steep weekly losses, with both major crude benchmarks retreating to pre‑Middle‑East‑conflict levels.

At 15:51 ET (19:51 GMT) on Friday, Brent crude futures for September delivery fell 3.7% to $72.74 per barrel, while U.S. West Texas Intermediate (WTI) futures for August delivery slipped 3.5% to $69.42 per barrel. Over the seven‑day period, each contract is down more than 9%, extending the decline that began after the signing of an interim U.S.–Iran peace deal the previous week. The benchmarks this week hit their lowest since 27 February, the day before the U.S.–Israel joint assault on Iran, and at the height of the crisis Brent had briefly approached $120 per barrel.

Shipping Activity and Geopolitical Tensions

Despite President Donald Trump’s claim that Iran violated a cease‑fire by firing at least four “One Way Attack Drones” at vessels in the Strait of Hormuz and striking a cargo ship, overall traffic through the strait remained resilient. Kpler data recorded 54 verified crossings of commercial and energy‑linked vessels on Thursday. Analysts at ING noted that much of the increase reflected previously stranded ships finally exiting the Persian Gulf, and warned that flows could recede once those vessels have cleared the area. The same data highlighted a second LNG tanker reversing course near the strait, adding a note of uncertainty.

The vessel reportedly hit was a *Singapore‑flagged cargo ship named Ever Lovely, attacked by Iran’s Islamic Revolutionary Guard Corps (IRGC) near Oman, according to the Wall Street Journal. The United Kingdom Maritime Trade Operations confirmed the incident, and the International Maritime Organization (IMO) halted a coordinated evacuation plan for over 11,000 seafarers* that had been prepared earlier in the week, citing the attack.

OPEC and Iraq Production Allocations

Iraq’s oil ministry announced that the Organization of the Petroleum Exporting Countries (OPEC) has begun to gradually restore Iraq’s pre‑war production allocations, a move intended to strengthen the country’s output capacity and aid the recovery of its oil sector. This follows earlier Reuters reports that Iraq, OPEC’s second‑largest producer after Saudi Arabia, had considered exiting the cartel if it could not secure a substantial increase in production.

Market Context

The article underscores that market participants are currently focusing on the resumption of oil flows through the Strait of Hormuz, with the observed traffic increase offsetting some of the price pressure caused by the geopolitical flare‑up. Nonetheless, the combination of a >9% weekly drop in crude prices, ongoing security concerns, and evolving OPEC‑Iraq dynamics creates a volatile backdrop for the global oil market.